Pension changes


At the end of last year, the UK government made a number of statements with regards to the future of pensions and their general pension outlook. Let us take a look at some of these changes and how they may affect UK expats.

One of the main changes to come about is the scrapping of the required annuity purchase. Up until now, UK pension holders were made to purchase an annuity at the age of 75, and their pension income would then be paid out through that. However, under the new legislation, people who have yet to begin drawing their pension benefits may now deer until a later date for their choosing.

People are also now able to take benefits in the form of a lump sum before the age of 75, something that was previously not allowed.

There have also been changes made to tax charges on lump sum benefits. Un-crystallised lumps sum death benefits from a lifetime allowance will face no tax charges. Although, a 55 percent charge will be applied if the holder dies at age 75 or over.

These are just some changes that have been introduced, Learn more about pensions in our Pensions and Retirement Planning section.

Also, when making financial decisions it’s always advised that you seek professional advice, speak to a recommended IFA for more help with planning your future.